No economy can flourish without the rights of the consumer being protected. A consumer is an indispensable actor of any economy as he is the person who buys or hires goods or services from the seller and in turn boosts employment in the country. Thus, protecting the rights of the consumer is important because in the present times the demands and expectations of the consumer have changed due to globalization and growing awareness. However, the availability of a large number of goods and services sometimes proves to be harmful to the consumer as not all sellers and service providers are genuine.
The Consumer Protection Act, 1986 was established to address the grievances of the consumer and to protect their interests. It was a laudable step at that point of time and amended from time to time. However, the three-decade-old legislation failed to keep pace with the developments in the market and digital technology in the country. For example, the right to proceed against a person who had violated the rights of the consumer was not given in the Act, and the State and District Consumer Redressal Forums had to be approached, which only compensated consumers for the loss they had incurred. There was neither any collection of data nor any inquiry regarding injuries or deaths on account of defective products or services. In short, there was no regulatory body to control or keep a check on violation of the rights of consumers.
Now, a new phase in Consumer Rights in India has begun with the Parliament passing the Consumer Protection Act, 2019 and repealing the Consumer Protection Act, 1986 making the Consumer more powerful than before. The main highlight of the Consumer Protection Act, 2019 is that it establishes a Central Consumer Protection Authority which acts as a regulatory body to “promote, protect, enforce consumer rights as a class.” A clear shift from Caveat emptor (let the buyer be aware) to Caveat venditor (let the seller be aware) can be seen in the new provisions as the unfair trade practices and fraud done by the seller will now be penalized. The latest Act also makes provisions for punishment regarding unfair trade practices and misleading advertisements and many more changes which keep the rights of the consumer up to date with the contemporary changes in the market.
This article deals with the major highlights of the concepts under the Consumer Protection Act, 2019. A humble attempt has been made to discuss and evaluate certain changes which have been made under this Act in comparison to its old counterpart.
Keywords: Consumer Protection Act
JEL Classification: K2
Suggested Citation: Suggested Citation
Kumar, Vipan and Sharma, Adya, Strengthening Consumer Rights: The Advent of Consumer Protection Act, 2019 (September 1, 2019). SEBI and Corporate Laws, Vol. 156(2), 2019, at p. 7, Available at SSRN: https://ssrn.com/abstract=3630775 or http://dx.doi.org/10.2139/ssrn.3630775
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